The U.S. Securities and Exchange Commission (SEC) is reportedly moving to approve proposals that will enable stocks to trade on-chain just like crypto. This comes as more companies look to tokenize their stocks for easier access.
SEC Weighing Proposals For On-Chain Stock Trading
According to The Information report, the commission is moving to allow stocks to trade like cryptocurrencies as it is currently drafting a plan for these assets to trade on blockchain networks. The agency plans to let crypto tokens represent shares, enabling 24/7 trading of these assets.
As CoinGape reported, Nasdaq had filed a proposed rule change with the SEC to allow trading of tokenized stocks on its platform. The exchange proposes that these stocks trade similarly to traditional stocks, with mechanisms in place to enable the settlement of tokenized trades.
Meanwhile, companies are already moving to tokenize their stocks, with Mike Novogratz’s Galaxy Digital becoming the first Nasdaq company to tokenize its common stock on Solana. Solana treasury company Forward Industries is also looking to tokenize its FORD stock on Solana.
Ethereum treasury company SharpLink has also recently revealed plans to tokenize its SBET stock on Ethereum, making it the first company to do so on the Ethereum blockchain. On-chain stock trading could happen sooner rather than later, as top crypto exchanges Coinbase and Robinhood are lobbying for a fast rollout.